Chipotle reports Q3 profit dip to US$382M amid slower same-store sales, reveals aggressive expansion plan

NORTH AMERICA – Chipotle Mexican Grill has reported a slight decline in third-quarter 2025 profit to US$382.1 million, or US$0.29 per diluted share, down from US$387.4 million a year earlier.

Despite this, net sales grew 7.5% to US$3 billion, driven by new restaurant openings and a marginal 0.3% rise in comparable sales.

Digital orders made up 36.7% of food and beverage revenue. Average check size increased 1.1%, partly offset by a 0.8% drop in transactions.

During Q3, Chipotle opened 84 company-operated and two international partner restaurants.

The chain plans to open between 315 and 345 company-owned restaurants in 2025, with 350 to 370 openings targeted for 2026, including international partner locations.

Over 80% of new company-owned units will feature Chipotlane drive-thru lanes optimized for digital orders.

Chipotle’s food and packaging costs decreased to 30% of revenue, aided by prior menu price hikes and improved cost efficiencies, though inflationary pressures on key ingredients and new tariffs partially offset gains.

Labor costs increased to 25.2% of revenue due to wage inflation and softer sales volume, while general and administrative expenses rose, mainly due to higher stock-based compensation.

The company repurchased US$686.5 million in stock at an average price of US$42.39 per share during the quarter.

CEO Scott Boatwright acknowledged persistent macroeconomic challenges but highlighted Chipotle’s strong brand and value proposition.

He outlined strategies focused on enhancing restaurant execution, sharpening marketing, accelerating menu innovation, and expanding digital engagement to regain transaction growth.

Chipotle Mexican Grill has aggressively expanded its footprint over the past year, opening a record number of new locations to fuel growth despite current market challenges.

In 2024, the company opened over 300 new restaurants, continuing this momentum into 2025 with plans to open between 315 and 345 company-owned sites.

For 2026, Chipotle aims to accelerate even further, targeting 350 to 370 new openings globally, including 10 to 15 international partner-operated locations.

Over 80% of these new stores will feature Chipotlane drive-thru lanes, leveraging the growth in digital orders, which accounted for 36.7% of food revenue in Q3 2025.

This expansion strategy supports Chipotle’s efforts to boost revenue and offset softness in same-store sales by increasing brand presence and customer convenience worldwide.

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